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Cooper cuts 1,000 jobs
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December 28, 1998: 10:36 a.m. ET
Electrical products company will move some operations to Mexico
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NEW YORK (CNNfn) - Electrical products firm Cooper Industries Inc. will slash its workforce and shut down some of its operations in a cost-cutting move, the company announced Monday.
Cooper (CBE) said it plans to cut 1,000 workers during the next 12 to 18 months using a combination of voluntary termination, which employees can accept to receive enhanced severance benefits, along with layoffs.
About 350 of the job cuts will be made during the first quarter of 1999, the Houston-based Cooper said.
In addition to the cuts, Cooper said it will eliminate "more than a dozen" facilities worldwide. The work done by the facilities will be transferred to other operations or to expanded facilities in Mexico, where manufacturing costs will be cheaper.
"As we look to the future, the changes we've announced today are necessary for us to effectively compete," said H. John Riley, chief executive officer of Cooper. "Over the last several years we've made considerable progress in reshaping Cooper into a company focused on our higher growth and less volatile electrical tools and hardware businesses."
Cooper said it will take a fourth-quarter charge to cover the expenses of its program, but added that the charge would be more than covered by a stock transfer. The full benefits of the program, it said, will start to be realized starting in the second quarter of 1999.
Cooper has been active recently in Latin America. One week ago, it announced it acquired the remaining 51 percent interest held by its joint venture partners in Empresa Andina de Herramientas, S.A., based in Cali, Colombia, and acquired two Mexican hand tools businesses
Cooper stock was down 1-3/16 to 46-1/4 in Monday morning trading.
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Cooper Industries
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